There are economies of scale on the Great Lakes/St. Lawrence Seaway system, even with the present short navigation system. Greater economies could be realised by developing vessels capable of both lake and ocean voyage.
American inland waterway transport is subject to a complicated system of control by government agencies, which require knowledge of costs. Inland waterway costs have fallen slightly, and a large share of the market has come into the hands of a small number of firms. The authors find increasing returns to scale for size of firm and output.
Calculations are given for delays due to lock service, to making and breaking tows, and to other causes. Prediction of delays is useful in determining whether a lock should be expanded as well as in estimating the cost of moving cargo.
